Direct materials at 1st January 2023 were $120,000 and $80,000 as on 31 st December, 2023. During the year, the company purchased raw materials of $220,000. The company policy is to maintain the raw material used in the production is equivalent to 30% of direct labor costs, and 20% of conversion costs. The manufacturing overhead cost consists of maintenance cost of $200,000 which is a mixed cost. Productions and Sells information is are as follows: Particulars Production Sells Selling Price Per Unit During year 2023 40000 units 30,000 units $100 Next Year 2024 60000 units 50,000 units $100 In the year 2024, to produce 60,000 units the mixed cost would increase to $250,000. However, during the both year sales commission would be 10% of sales, advertisement on media would be $150,000. Management remunerations would be $300,000, office rent would be $15000 per months, and utility bills would be $1000 per months. Required: 1. At the first attempt you should show the cost of goods manufactured for the year 2023 and 2024. 2. Using high-low method, Calculate the variable and fixed portion of mixed cost and show the cost formula for maintenance. 3. Prepare income statements both in the variable costing and absorption costing method. 4. Calculate per unit product cost using variable costing and full costing method. 5. Advise the management why absorption costing is not a suitable method to calculate product cost for internal decision making like pricing. Instead, why variable costing method should be used for internal decision making. 6. Guide the management on business performance and how to improve the performance. You should show them the 2023 and 2024 Break Even Point in amounts and units as well as operating leverages of the company and how to improve them.